Used car sales have shown a massive shift in the last few years, be it search and purchase techniques, increasing preference for online shopping solutions, financing options, dealership services, or many more. As per PRNewswire, the worldwide used car market is projected to hit $2.67 trillion by 2030.
What does the future have in store?
Thanks to the advent of technology, the demand for used cars has surged. The ever-increasing use of artificial intelligence (AI) and digital functionalities will continue reshaping the online buying experience. Introducing certified used vehicle programs can be beneficial for boosting transparency between dealers and customers. Online sales channels have been one of the major drivers of used car consumption. While online automotive retailing currently represents a small portion of total used car sales, this segment possesses substantial growth potential. Dealers have to start building omni-channel networks – revamping websites for sales and marketing and eventually directing potential buyers to showrooms to complete the purchase process.
Preparing for what’s to come
The automotive industry is plagued with supply chain issues, economic downturn, and growing utilization of ride-hailing services. For automotive dealerships, it is time to reconsider strategies to meet consumer demands. Here are just a few main points to focus on to excel in the ever-changing industry.
Managing inventory
Build a homegrown inventory that consists of vehicles initially sold as new, but after undergoing service and maintenance, they were eventually traded-in, reconditioned, and sold as pre-owned vehicles. Thus, dealerships can make lucrative profits all throughout a vehicle’s life cycle.
Innovative marketing methods
Since customers prefer to shop for vehicles online instead of visiting dealerships, it is imperative for dealers to explore new marketing tools. Establishing a strong online presence is very important, while implementing predictive marketing tools that help to engage with your audience. It involves creating a compelling website and leveraging the power of social media marketing to effectively target potential customers with intelligent advertisements and interesting content. You must also build up a long-term rapport with customers by staying in touch and available after a purchase.
Adoption of electric vehicles (EVs)
Governments are offering subsidies and rebates to encourage EV sales, while ensuring affordability and equitable access, particularly for low-income households. Dealerships will play a vital role in facilitating the mass adoption of electrification. Thus, it will enable widespread electrification, while creating a vast network of retailers and service providers with expertise in local marketing.
How to take advantage of used car market trends?
- Make use of online platforms and digital retailing to expand your reach. Display inventory with virtual tours and 360-degree views of vehicles, so customers can visualize the look and feel of the car.
- Curate a diverse selection of high-quality used cars. Highlight unique features, low mileage, and certified pre-owned options to stand out from the competition.
- Provide remarkable service and be transparent with vehicle information. Offering value-added services like inspections and warranties can build trust.
- Price your vehicles competitively based on market trends. Give customers flexible financing options.
- Build your online presence – encourage reviews and address complaints ASAP.
- Launch targeted campaigns on both digital and traditional channels – use social media, collaborate with local businesses, etc.
- Provide maintenance packages, service discounts, and referrals to foster long-term relationships.
Looking for a trade-in solution?
Modera has specifically developed a solution to manage used car sales. Offering full transparency, the tool is beneficial for the salesperson, sales manager, appraiser, and, of course, the customer. The trade-in tool can be accessed online to upload photos of used vehicles, assess damage, calculate prices based on market value, use templates for completing paperwork, and much more.
The demand for pre-owned vehicles has seen considerable growth in recent times, which you can capitalize on. To stay ahead of the curve, it’s wise to implement a tool like Modera’s trade-in solution to offer competitive pricing and thus boost used car sales.
